Thursday, February 24, 2022

Euroseas (ESEA)
Another Positive Data Point

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Time charter on Aegean Express feeder ahead of expectations. Consistent with comments from the recent earnings call, a 36-39 month time charter on the 1,439 TEU Aegean Express Feeder was secured at at an average TCE rate of $41.0k/day. The time charter should generate total revenue of $47.0 million and EBITDA of $36.0 million over the first 36 months, or EBITDA of close to $1.0 million per month beginning in early April.


Forward 2022 cover of close to 100% at average TCE rates of $31.0k/day creates high visibility.  Recent fixtures pushed 2022 forward cover to almost 100%, and there is only one remaining opportunity this year to move TCE rates closer to market rates. Forward cover represents a solid base for our 2022 EBITDA estimate of $123.6 million, or well above our adjusted 2021 EBITDA of $56.8 million …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.